eHappyLife
eHappyLife
Happy Living
Popular Podcasts
3,050,213
Total Podcast Downloads
Through July 31, 2014
Member Area
  Member Login  
 
Email:
Password:
 
How To Invest Better
Using Google

Written Sunday 01/25/09 by Joe Rossini

The internet is full of good and bad websites. However, just as with anything in life thereís probably more good than bad on the internet and itís up to each and every user to make GOOD choices when you are surfing. In this weekís lesson, we will be concentrating on one of the best sources of information to come along since a man or woman took their first step on this planet. A place we all know and probably use named Google.

Because most individuals I know had a horrible year with their investments in 2008, my concentration in this lesson will focus on Google Finance. A day doesnít seem to go by without someone telling me their portfolio lost 20 to 50 percent last year. I never ask them to tell me. But they need someone to share their pain with. Iím a good listener and rarely give an opinion on how or what I invest in. However thanks to the knowledge available on Google, and the fact that I manage my own financial affairs, I was fortunate enough not to be a victim in 2008 like so many others.

Let me begin by saying when you or your broker buys a stock, you must understand that you are now a part owner in that company. Common sense should dictate that if an individual who was running a small or large company that was burdened in debt and was losing money like a surgery patient loses blood on the operating table, you would not feel comfortable taking out your wallet and peeling out some cash to invest in that failing company. Yet this is what goes on every day in the stock market. Sensible mature adults, who worked for decades accumulating their savings, turn over these savings to their ďfinancial adviserĒ who purchases stocks in companies that these sensible mature adults know nothing about. I am not trying to knock all financial advisers in this lesson. Iím sure there are many honest, smart ones out there. However, itís not very smart when these advisers make bad decisions with YOUR hard earned savings.

Anyone really interested in learning about the companies either they invest in personally or through a broker, have vital information at their fingertips at Google Finance. Just type in the name or symbol of the stock you would like to investigate and like magic up pops a wealth of knowledge about that company. For the purpose of this lesson, we will take a look at General Motors or GM since they have been in the news for over a month looking for loans from you and me via the TARP fund. The first bit of information that stares at you is a summary of the company including a real-time stock price when the market is open and all the simple stats you may want to know. Below you will see a basic chart of the closing prices of GM going back to 1978. To the right you will see the latest news about GM. Below the charts you will see links to the latest news about GMís competitors and related companies. Thereís a lot more on this first page that stares at you including links to analysts, major shareholders, officers and research reports. But the most important information lies in the section named FINANCIALS.

Now this section regarding their financials will make or break an investors decision as to whether or not they want to own a piece of this company. We donít have to be accountants to understand the word EQUITY. For those of us who own a home, we know that the equity in our home is equal to the value of our asset (our homeís market value) less the liabilities (or mortgage). Thus if ďtodayísĒ value of our home is worth $300k and our mortgage is $200k, our equity is $100k. Thatís as straight and simple as it gets to explain equity. According to Google, in the case of GM, their equity as of Sept 2008 was minus $59 billion. Thatís rightÖ their liabilities exceed their assets by $59 billion dollars. Is there any surprise that they are having a problem raising capital from any lender to operate their company? And as a tax payer and now lender to GM via the Tarp, how do you feel that YOU just gave them a huge loan?

Well, enough about GM. My point for this lesson is to begin using the valuable information that resides at Google Finance to help you make decisions about whether or not you should be investing in a particular company. There are three main components to study any company listed on a stock exchange. Their Income Statement; Balance Sheet; and Cash Flow Statement which are all found on this same page Ė for free! If you donít understand these three components of a companyís health Ė then Google these phrases and youíll find lots of explanations at Wikipedia and other sites. Start reading and learning about companies before you dare and take your hard earned money and invest in them.

The household names we all grew up on and trusted means very little today when it comes to owning these stocks. Dividends have always been a large part of the return we enjoyed over the years, but unfortunately they are getting slashed or suspended on a daily basis. Itís UP TO YOU to become as knowledgeable as humanly possible about your investments. And Google Finance is a great place to start your learning process. There are a plethora of free and fee investment sites to visit or subscribe to, if you really want to dig deeper. However, you may never have to leave Google Finance to find all you need to know to make better investment decisions. Donít leave investing to chance. Start LEARNING TODAY at Google Finance and make 2009 a much better year!


Email a friend......E-Mail This Article To A Friend Printer Friendly Version......Print This Article
Copyright ©2001-2013 eHappyLife, LLC - All Rights Reserved
Articles may not be published without the consent of the Author


Learning Life's Lessons Master Archives
Introduction
The Real Deal Relationships | Parents Should Be Special | Children Learn By Example
Make Time For Your Kids | Don't Wait To Share | Peers and Friends Come and Go
What Can Teams Teach Us? | Who's Telling The Truth?
Should You Fight To Be Right? | Exceeding Job Expectations
Relationships with Stats and Numbers | Using Personal Computers
The Road To Improvement | Doing The Do-able | Moving The Move-able
Doing What You Say | The Greatest Generation | You Can Count On Me
Take More Pride In 2005 | Financial Independence Anyone? | I Just Didnít Have Time!
Avoid Assuming Anything! | Never Take Anything For Granted!
The Power Of Fan Loyalty! | Dangers of Resisting Change! | Life's Peaks And Valleys
The Process Of Reinvention | Wisdom | Intuition and Instincts | A Little Bit At A Time
Why Speed Counts | The 80-20 Principle | Showing Your Appreciation
Think, Focus, And Finish | Learning From Others | The True Value Of Time
A Mother's Day Tribute | Writing Helps To Learn And Share | Are You Really Listening?
Memorial Day Tribute | Changing Is Difficult | Bubbles, Balance & Boredom!
A Perspective On Fatherhood | Why Courtesy Counts? | 1776 And Independence Day
Tools In The Right Hands | Boomers And Retirement | Playing The Games Of Life
How Tech Savvy Are You? | Rhythm And Momentum | Consistency Counts!
The Power Of Saying THANK YOU! | Fix Small Problems Quickly!
A Tribute To Labor Day | Scarcity And Value | College Footbal Lessons
The Most Important Clients | Develop A Solutions Mindset
Lifelong Learning Is Essential | A Game Of Mistakes | Respecting Rules And Laws
The Concept Of Systems | Strive To Make Others Happy | Hire Slow, And Fire Fast
A Lesson About Loyalty | Following-Up Reaps Rewards | Worry Less And Enjoy More
Live Today And Plan For Tomorrow | Something For Nothing review
Some Opinions On Advice | Resolutions Of Health & Peace
Where Dishonesty Can Lead Us | Living Each Day With Purpose | The Work Ethic
Avoiding Misinterpretations | Super Bowl And Our Culture
Start a Lifetime Word Course | Silence Is Golden Rules | A Perspective On Timelines
Invest In What You Know | Setting Priorities Is A Skill | The Power Of Prevention
Finding Relevance When You Retire | Benefit From Daylight Savings
Strive For What You Become | Choosing Price Or Quality | Understanding Your Inflation
Pursuing A Brighter Future | Creating Value And Wealth | The Ultimate Professional
Always Do Your Best | Choose Your Friends Wisely | Thoughts For The Class Of 2006
The Long Road To Showtime | In Memory Of James Rossini
Benefits Of Being A Contrarian | Innovate And Specialize Now!
Invest Your Energy Wisely! | A Hundred Weeks & Counting!
Developing A Sense Of Urgency | Does Fidelity Really Matter?
Does Brand Loyalty Still Matter? | A Perspective On Free Time
The Reality Of Competition | Why The Best Seek Education
Spend And Borrow Money Wisely | Want Your Clients To Love You?
Brainstorming Really Works | Losing Your Best Furry Friend
Be A Student Of Your Body | Drive Safe To Stay Alive | The Relevance Of Polls
The Power Of Paying Promtly | Learning Quickly From Mentors
Singing Happy Birthday Is Powerful | Always Respect Your Competitors
Gambling Is A Bad Bet | Develop An Investment Mindset
Till Respect Do Us Part | Navigating Through Holiday Shopping
Always Field Your Best Team | The Language Of Love
Forget The Ugly Past And Move On | You Are What You Think
The Internet Has Changed Our Lives | Dot The i's And Cross The t's
Service Is Not A Favor | Success + Overwhelm Equals Complacency
Why Real Deal Relationships Expire | The Ugly Costs of Misunderstandings
Taking Giant Steps And Leaps Of Faith | Searching For A Happy Life
Why Can't The Honeymoon Last? | Creating More Serenity Now
Who's Responsible For Irresponsibility? | How To Destroy Team Morale
The Gifts My Parents Gave Me | Turning Dreams And Visions Into Reality
Keep Clean, Organized Surroundings | Return Communications Like A Pro
Start Saving As Early As Possible | In Memory Of Rose Rossini
Bouncing Back From Adversity | The Early Bird Catches The Worm
Howís Your Name Brand Doing? | My One And Only Lesson On Politics
Itís Fatherís Day Once Again | A Trifecta Of Benefits
Mirrors Can Bring Pain Or Pleasure | Gadgets To Improve Your Attitude
Selling Your Conscience For A Buck | Dealing With Daily Obstacles
What Really Matters In Your Life? | What Really Matters In Your Life?
A Perfect Financial Storm Coming? | Avoid Distraction Overload
Turning Passion Into Profit | Disruptive Change Will Rule The Future
Buy Tools Before You Need Them | Pessimism Or Optimism? Your Choice!
Avoid Playing The Blame Game | The Development Of Instincts
Keep It Simple, Efficient & Consistent | Understanding The Workaholic Syndrome
Relationships Are What We Live For | We May Need A Push To Get Started
The Power Of A Positive Attitude | The Emotion Of Disgust
For Boomers And Caring Citizens | The Importance Of Focusing
Always Keep Your Promises | The Power Of Energy
The Power Of Persistence | Remove The Shackles Of Indifference
Become The CEO Of Your Life | A Thirst For Knowledge in 2008
Enjoy Being More Decisive | What Happened To Accountability?
Make Health A Top Priority In 2008 | Less Talk, More Action!
Understanding Team Dynamics | Excuses Benefit No One
Life Is A Balancing Act | Is Happiness Eluding You?
How Do You Define Success? | Time Is Money
The Necessity Of Flexibility | We Are All Salespeople
Being Accountable To Yourself | Dealing With Disappointment
Why Excess Adjusts The Marketplace | Recognizing Value And Importance
Donít Let Worry Drain Your Energy | That's Life!
Build Self Esteem Every Day | Avoid The School Of Hard Knocks
Praise More And Criticize Less | How To Increase Your Business Value
Why You Should Serve Customers Better | Don't Let Small Doubts Stop You!
Numbers, Stats And Market Forces | Always Strive For Excellence
Discipline Is Necessary For Progress | Why Service Can Really Stink
Reduce The Friction In Your Business | Avoid Being Indecisive
Everything You Do In Life Counts! | Time Is Our Most Precious Asset
High Energy Leadership | Anticipating And Preparing For Change
You Are Responsible For Your Choices | Resolve Means "I WILL"
Leading And Learning Communication Skills | Be A Member Of The 5% Club
Leading With An Unshakable Character | Defining Wealth And Value
Who Can You Really Trust? | The Rewards Of Growth
A Two Step Cure For Procrastination | Desire Is A Powerful Emotion
What Makes Customers Buy? | You Must Provide Value To Compete
Honest Self Appraisal | The Fear Of Failure | Take A Deep Breath
Are You A Master Or Victim Of Change? | Act Like A Fiduciary To Restore Trust
Which Will It Be: Inflation Or Deflation? | The Right Selling Price
Why People Don't Set Goals | Take Control Of Your Time
How To Invest Better Using Google


To view Polls by Questions Click Here

To view Polls by Topic Click Here

To view Personal Articles Index Click Here

eHappyLife
For Home Inspections in SW Florida please call my trusted friend Jeff Gerwitz
239-994-1694
United Inspection Services
Today's Featured Lesson is: Parents Should Be Special
232 Lessons Presented
Click below to listen to The Real Deal Relationship

Build Your Vocabulary
Download our FREE iPhone & Android APP Now!